The European Central Bank held interest rates steady today to buy itself more time to assess the resilience of the euro zone economy as oil prices remain strong and the lustre on global growth fades.
The decision, which was unanimously expected in financial markets, kept the euro zone benchmark interest rate at its record low of 2 per cent for the 15th month in a row.
ECB President Mr Jean-Claude Trichet will explain the Governing Council's decision at a news conference later this afternoon.
Crude oil prices resumed their climb overnight, breaching $44 a barrel. Already their 30 per cent surge has dented manufacturing output globally, as purchasing executives' surveys for August showed.
But so far Mr Trichet has sent a message that he doesn't see costlier energy hitting growth. "There is no reason to question our confidence in gradual recovery," he said in a radio interview last week.
Rather euro zone monetary officials say inflationary risks weigh most heavily on ECB policymakers minds.